RTB (Right to Buy) questions - I'm not the tenant but live there and own a buy to let

Bananas_1

Bookworm105 said:

Bananas_1 said:

We would still have money aside for anything major like a boiler needing to be replaced etc. 

do you realise that as (part0 owner of a flat in a tower block you will be liable for repairs outside the flat itself?
if the block needs redecorating you will be charged a share of the bill
if the roof needs replacing you will be charged a share of the bill

Your share will make the cost of a boiler look like the cost of the weekly shop in comparison to the £ tens of thousands you might be charged. 
You may see RTB as a means of getting an inheritance, but when applied to a flat in a block, that inheritance can vanish in debts owed to the council.

have you established how much service charge you'll have to pay each quarter?

Thanks for your reply. 

We fully understand that we'd become liable for repairs outside of the flat. I'm still trying to establish if we'd be 25% liable or 100% liable for these costs as we would be for inside of the flat. 

We're aware of the service charges and how much they costs per month. The council have stated that we'd have to pay 25% of the service charge per month. 

_Penny_Dreadful

Bananas_1 said:

Hi all

Hope everyone well!

I have a few questions regarding RTB (Right to buy) rules. Before we seek legal advice I want to have as much information to hand as possible. Council hasn’t been very helpful thus far.

Me and my daughter aged 12 live with my mum who is the tenant in a 3 bedroom council flat (secure tenancy). We have lived with her for several years.  My mums tenancy started in 1998 and she’s always been the sole tenant.

Under the Right to Buy scheme we are considering purchasing 25% share of the property (our council offer this) and then hopefully in time purchase more share in the property. We’re unable to get a mortgage as we’ve been told by several banks that because the flat is on a high level they won’t mortgage it. I also own a buy to let property far away from where we live. This has been my permanent home for me and my daughter and can obviously prove this plus my daughter is in school in this area.

Will I be permitted to be on the application for the RTB if I own a buy to let?

My concern is that if we do this and my mum passes away would the council force me and my daughter to leave as we would have a spare bedroom?  Would I have more rights as I would own a share in the property? Could the council force me to sell our 25% share of the property?

Will the council accept us purchasing 25% share with savings and no mortgage?

Thanks as ever for your help!

Contacting a RTB advisor might be a good shout.

I know that a family member who has been living with the tenant for 12 months or more are their only or main home can make a joint RTB application with the tenant but I'm not sure if your BTL property would make you ineligible to make a joint application with your mum.  It would seem perverse if the RTB regulations allow someone who already owns a property to purchase an additional property at a discounted price.

https://www.ownyourhome.gov.uk/scheme/right-to-buy/contact-an-agent/

Something else to consider is how the SDLT will work.  As you would be purchasing an additional residential property the higher rate of SDLT could apply to the purchase.  I know with HTB Shared Ownership people can elect to pay the SDLT based on the size of share purchased and then again each time their staircase or opt to pay SDLT on the full property value so that they don't need to pay SDLT again if they staircase.  I'm not sure if what is being offered to you will follow the same SDLT rules as HTB Share Ownership as what you are describing sounds like a RTB/Shared Ownership hybrid.

Bananas_1

_Penny_Dreadful said:

Bananas_1 said:

Hi all

Hope everyone well!

I have a few questions regarding RTB (Right to buy) rules. Before we seek legal advice I want to have as much information to hand as possible. Council hasn’t been very helpful thus far.

Me and my daughter aged 12 live with my mum who is the tenant in a 3 bedroom council flat (secure tenancy). We have lived with her for several years.  My mums tenancy started in 1998 and she’s always been the sole tenant.

Under the Right to Buy scheme we are considering purchasing 25% share of the property (our council offer this) and then hopefully in time purchase more share in the property. We’re unable to get a mortgage as we’ve been told by several banks that because the flat is on a high level they won’t mortgage it. I also own a buy to let property far away from where we live. This has been my permanent home for me and my daughter and can obviously prove this plus my daughter is in school in this area.

Will I be permitted to be on the application for the RTB if I own a buy to let?

My concern is that if we do this and my mum passes away would the council force me and my daughter to leave as we would have a spare bedroom?  Would I have more rights as I would own a share in the property? Could the council force me to sell our 25% share of the property?

Will the council accept us purchasing 25% share with savings and no mortgage?

Thanks as ever for your help!

Contacting a RTB advisor might be a good shout.

I know that a family member who has been living with the tenant for 12 months or more are their only or main home can make a joint RTB application with the tenant but I'm not sure if your BTL property would make you ineligible to make a joint application with your mum.  It would seem perverse if the RTB regulations allow someone who already owns a property to purchase an additional property at a discounted price.

https://www.ownyourhome.gov.uk/scheme/right-to-buy/contact-an-agent/

Something else to consider is how the SDLT will work.  As you would be purchasing an additional residential property the higher rate of SDLT could apply to the purchase.  I know with HTB Shared Ownership people can elect to pay the SDLT based on the size of share purchased and then again each time their staircase or opt to pay SDLT on the full property value so that they don't need to pay SDLT again if they staircase.  I'm not sure if what is being offered to you will follow the same SDLT rules as HTB Share Ownership as what you are describing sounds like a RTB/Shared Ownership hybrid.

Thank you for this.

I have actually contacted them but answers are never clearcut!

The application form states that a family member can also be on the application as long as they have lived with the tenant for more than 12 months and this is their only OR main home not AND?  I agree that it doesn't make sense I could apply too if I have a BTL (I was an accidental landlord not through choice).  I would rather sell if it meant I could stay in our home here but just need clear answers and to make sure I'm following the rules correctly. 

Seems crazy that the only way we'll know for sure is if I apply as no one is giving us straight answers.